party poker stock price dropping

mattb8818 · #1 10-02-2006, 06:12 PM

I have no experience with investing so this might be completely wrong, but I was wondering why Party and other online gaming stocks went down so much over night. This was obviously going to happen so why didn't people get out early. It seems this is a counter example to the Effecient Market Theory. All I know about investing I read in a Random Walk down Wall Street so I could be and probably am completely wrong, but I was just wondering why this happened.

#2 10-02-2006, 06:18 PM

SlowHabit · #3 10-02-2006, 06:26 PM

There's no such thing as the Effecient Market Theory. If there exists one, all these poker sites' stocks wouldn't *collapse* like this.

mliew · #4 10-02-2006, 06:33 PM

You should probably read the posts in the Internet Gaming forum about how Party and pretty much every other poker site is very close to having to close their doors to all US customers. That might just be a little bit detrimental to their stock prices.

[ QUOTE ]
I have no experience with investing so this might be completely wrong, but I was wondering why Party and other online gaming stocks went down so much over night. This was obviously going to happen so why didn't people get out early. It seems this is a counter example to the Effecient Market Theory. All I know about investing I read in a Random Walk down Wall Street so I could be and probably am completely wrong, but I was just wondering why this happened.

[/ QUOTE ]

groosman · #5 10-02-2006, 06:42 PM

When is the time to buy up?
Will the stock drop much further?

BonusMidas · #6 10-02-2006, 07:03 PM

Was is possible to buy put options on some of these stocks? Like party gaming, sporting bet, and neteller.. If anyone had they would have made a fortune.

ASD99 · #7 10-02-2006, 07:14 PM

I am thinking the same exact thing...my guess is that Party will continue to drop upon the day Bush signs the law but after that who knows what will happen.

Thremp · #8 10-02-2006, 08:05 PM

[ QUOTE ]
There's no such thing as the Effecient Market Theory. If there exists one, all these poker sites' stocks wouldn't *collapse* like this.

[/ QUOTE ]

ZOMG you're right. There are never anomalies.

KDuff · #9 10-02-2006, 08:45 PM

I'd stay away from party and the other online stocks. 77% of party's revenue comes from US customers, so the company's stock has been devastated.

There are much better investments out there that do not carry the clear risks that this sector has recently experienced. Never be a hero.

I don't see how this is a violation of EMT. The Congress passed the law and only had two nays, so it's veto proof.

mattb8818 · #10 10-02-2006, 11:12 PM

I understand the reason, I just don't understand why the stock didn't drop before the bill was passed since it was obvious that the bill would pass in a short time.